Chrysler has reduced construction of vehicles. They are now only producing Jeeps and minivans. The company has already cut over 64,000 jobs. Now the Chrysler CEO is talking to the GM CEO to make a deal.
The marriage of the companies would be beneficial for both sides. Chrysler owner Cerberus Capital Management no longer wants to be in the business. And GM CEO is in desperate need for credit. The GM is facing is keeping enough funds while the market rebounds.
2009 is projected to be an even worse year for automakers and analysts have lowered their prediction to only 13 million vehicles being sold in the US; this is a 3 million vehicle drop from 2007.
1 comment:
I think the GM and Chrysler deal would do wonders for the failing Detroit 3. I don't know if it would help the automobile market increase but it would definitely help the funds that GM seems to be losing since they are expecting that they will be at their minimum operating cash level of $14 billion and Chrysler's cash will help ease the GM woes.
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